The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The White House on Wednesday issued a memo to federal employees scrapping its original order, according to a document viewed by The Wall Street Journal. The two-line memo sent jus

The OMB memo had directed federal agencies to pause grants and loans pending a review of compliance with the agenda of President Donald Trump.

The White House rescinded an order today that froze trillions of dollars in federal grants and loans in an effort to purge the government of what President Trump has called a “woke” ideology. The directive had been temporarily blocked by a federal judge.

The new memorandum, just two sentences long, will allow agencies to continue their normal operations after uncertainty over the impact of the initial directive caused widespread chaos across government. It followed a temporary injunction by a federal judge that prevented the original Office of Management and Budget memo from taking effect.

An internal OMB document shows that it is official administration policy to block funding to provoke a constitutional challenge.

The White House's pause on federal grants and loans appears to be over. A memo sent by Matthew J. Vaeth at the Office of Management and Budget on Wednesday, January 29, and addressed to the heads of executive departments and agencies,

The Washington Post's Rhonda Colvin and James Hohmann are joined by White House reporter Cat Zakrzewski to discuss President Trump's first week back in office – and what happened the night he decided to fire more than a dozen government inspectors general.

The Vermont senators and representative gave a joint statement expressing their concern of this "authoritarian" decision to freeze federal grants.